After streaming giant Netflix (NASDAQ:NFLX) reported a reversal in customer losses, Nasdaq futures stayed the same on Wednesday. However, worries about rising interest rates weighed on the mood and seemed likely to stop Wall Street’s recent rally.
The three major U.S. stock indexes have gone up for two days in a row. This is because big U.S. banks reported good quarterly results, which got the reporting season off to a good start. [.N]
In premarket trading, Netflix’s stock went up by 12% after it added 2.4 million new subscribers worldwide in the third quarter, which was more than double what was expected, and said it expected to add 4.5 million more by the end of the year.
Elsa Lignos, global head of FX Strategy at RBC Capital Markets, said, “Netflix is the latest thing to help bulls get back on their feet.”
“In the past few days, two themes have taken hold: European energy relief and “better-than-expected” Q3 earnings relief. It’s still too early to tell for sure, though, and most of the big earnings reports don’t come out until next week.
The rise in Netflix subscribers also helped the stocks of other streaming services. Walt Disney (NYSE:DIS), Warner Bros. Discovery (NASDAQ:WBD), and Roku (NASDAQ:ROKU) all increased their stock prices by 0.4% to 3.12%.
Tesla (NASDAQ: TSLA) Inc, Amazon.com (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOGL) Inc all gained between 0.3% and 0.6%.
Refinitiv data shows that analysts’ predictions for the third-quarter earnings of S&P 500 companies have dropped from an 11.1% rise at the beginning of July to just 2.8%.
At 5:00 a.m. ET, the Dow e-minis were down 39 points, or 0.13%, the S&P 500 e-minis were down 1.25 points, or 0.10%; and the Nasdaq 100 e-minis were up 12.25 points, or 0.15%.
